# Total Interest on loan.

• Oct 21st 2009, 05:20 PM
Total Interest on loan.
Hi I have a math class with a horrible teacher from some country and I can't understand a word she says. Thus, I have a problem with my math homework. By the way it's not the terminology I can't understand it's the crazy accent. Anyway, The problem I have is that I need to figure out the monthly payments I need to make which I believe I already have. Then I need to figure out the total amount of interest I need to pay. Heres the info I got.

Principal Loan = $135,000 APR = 5.9% Years = 30 I believe the monthly payment is at$800.73, but I'm not complete positive on that either. Any help would be appreciated.
• Oct 21st 2009, 05:24 PM
pickslides
Is it simple interest or compounding?
• Oct 21st 2009, 05:50 PM
Calculate the monthly payment and the total amount paid in interest for a home mortgage of \$135,000 with a fixed APR of 5.9% for 30 years.

That's the problem so my guess is regular interest.
• Oct 21st 2009, 06:08 PM
pickslides
A mortgage would suggest it is compounded.

Consider $A = P\left( 1+\frac{R}{100}\right)^t = 135,000\left( 1+\frac{5.9}{100}\right)^{30}$

divide this by the number of repayments $30 \times 12$
• Oct 21st 2009, 06:24 PM